Third Economic Impact Payments?

[treps15]

Question, my ex and myself both received 5600 for the 3rd EIP (we have 3 children together)

I claimed the kids in 2020, and will be claiming them again this year. Would she have to pay 4200 back to the IRS? She thinks it's correct the way it is but I dont believe it is and would rather neither of us get in any sort of trouble with the IRS.

She claimed them in 2019, she says that's why she was qualified. I can't seem to verify or fully disprove that claim.

Any confirmation on this would be greatly appreciated.

[ErnieS0 · Accepted solution]

No. Your ex doesn’t have to pay back any stimulus payments that you were legally entitled to receive. 

IRS made advance payments using 2019/2020 info, but the third stimulus is actually based on your 2021 income (which IRS didn’t have because taxes weren’t ready).

Anyone who qualified using whichever year IRS used but no longer qualifies under 2021 income can keep their payment.

Here’s what IRS says:

Q E15. Dependents: Can my 2021 Recovery Rebate Credit include an amount for a qualifying dependent if the dependent received the third Economic Impact Payment or someone else received the third Economic Impact Payment for the dependent? (added January 13, 2022)

A15. Yes, if you meet the eligibility requirements to claim the 2021 Recovery Rebate Credit. The amount of your credit may include up to $1,400 for a qualifying dependent you are claiming on your 2021 return.

See: Topic E: Calculating the 2021 Recovery Rebate Credit